The Reserve Bank of India on Wednesday opened the door for a major expansion push by gold loan companies and other retail-focused NBFCs. The RBI issued the Non-Banking Financial Companies – Branch Authorisation Amendment Directions, 2026, allowing NBFCs to open branches without prior approval. The sector’s most branch-intensive players, particularly gold loan NBFCs, stand to benefit immediately.
New Era of Scaling
“By removing the requirement for prior approval, the regulator has effectively unlocked the next phase of expansion for all serious players in the segment, said Manish Mayank, an industry expert. He said: Over the past year, several new-age corporate entrants tested the waters with selective branch openings, and the results have given them the confidence to scale aggressively. With gold prices supportive and unit economics improving, most branches are already operating profitably.
“The new norms now eliminate the procedural bottleneck that forced companies to repeatedly go back to the regulator for approvals, especially when expanding into high-potential local markets.”
New-Age Entrants
This change brings a level playing field. Established players will accelerate their network rollout, while newer entrants — which have already tasted early success — are preparing for massive expansion. Even those with legacy approval processes can now move faster. The earlier cap of 1,000 branches and the need for case-by-case permissions often slowed down growth plans. With that barrier gone, the industry is entering a phase in which expansion will be driven solely by business potential, not regulatory friction.